THE Tory government’s tax and benefit changes will mean a huge transfer of wealth from low and middle-income households to richer ones. The rich will reap 80% of the two billion of income tax cuts. For example:
1) A low income single parent with a baby earning £17,500 a year will be £530 worse off, losing £610 from benefit cuts whilst gaining £80 from tax cuts.
2) A middle income working couple earning £33,500 a year, with three children including a baby, will be £2,500 worse off overall, losing £2,700 from benefit cuts whilst gaining £160 for tax cuts.
3) A high-income couple with two children earning £100,000 a year, will be £480 better off.
Terry Banfield
Cardigan Crescent
Cwmbran
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